Sampsons Ch 7 & 8 Financial Plan Wrksht

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School

Gulf Coast State College *

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Course

1100

Subject

Finance

Date

Feb 20, 2024

Type

xlsx

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Uploaded by ProfDiscoveryArmadillo31

Personal Finance by Jeff Madura Name: Yvette Ledesma Date: 2/1/2024 The Sampsons—A Continuing Case Chapter 7: Assessing and Securing Your Credit 1.Should the Sampsons accept the increase in the limit on their credit card even if they do not anticipate using it? 2. Advise the Sampsons on steps that they can take to reduce their exposure to identity theft. The Sampsons should not increase their spending limit as it may thempt them to spend beyond their means. While continuing to make minium payments will benefit them, if they are to spend more on it, the card's annual fee may be linked to their level of spending costing the Sampsons more money in the longrun. If the Sampsons are currently making minimum payments, it would not be wise to increase those payments with the temptation of increased spending limits. According to the text, Identity theft occurs when any individual uses persinal identifying information without your permission. This information includes social security numbers, drivers license, bank account and credit card numbers. I would advise the Sampsons not to carry extreme documents on thier persons, such as a social security card, passport, and birth certificate, unless warranted. Keep a documented account of all credit cards in the wallet in case of a theivery. Instead of throwing mail away in the trash and risking trsh scavangers, shred any unwanted documents that have personal information

Personal Finance by Jeff Madura Name: Yvette Ledesma Date: 2/1/2024 The Sampsons—A Continuing Case Chapter 8: Managing Your Credit 1. Advise the Sampsons on whether they should continue making minimum payments on their credit card or use money from their savings to pay off the credit balance. 2. Explain how the Sampsons' credit card decisions are related to their budget. The sampsons should use their savings to pay off their debt because of the higher intrest rate that is associated to the card. The savings interest rate is signifactly lower than the card rate and it would benefit the sampsons in the longrun if they paid off the higher interest rate of 18%. This would give them more freedom to save more without the restriction of masking a minimum payment every month with added interest. By using savings to eliminate their credit card debt, there will be an immediate short-term reduction Because a credit card is required to be paid each month, it directly impacts the budget of the sampsons. Financing in a budget is affected like new car loan, more interest payment. Protection of wealth is affected like increase outflow for car insurance Investment, Retirement and Estate Planning are affected like planning to ensure children's education is covered. Liquidity is affected because savings are tied up for some fixed goals like down payment for the previously mentioned goal: a car. Everything that the Sampsons are

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